Friday, October 31, 2008

MediaTek to launch 2.8M TD-SCDMA handset chips in 2009

Oct 31, 01:15
MediaTek plans to become the first chip maker to introduce high-speed 2.8M TD-SCDMA handset chips to China-based handset makers in the beginning of 2009, according to industry players

Wednesday, October 29, 2008

Vodafone places mid-range handset orders with Foxlink, says paper

Vodafone has signed a cooperation agreement with Foxlink (Cheng Uei Precision Industry) for the purchase of a significant quantity of mid-range handsets, according to a Chinese-language Commercial Times report.The handsets to be manufactured by Foxlink for Vodafone will have multimedia-rich functionality built-in using handset solutions from MediaTek. Shipments are to begin in 2009, said the paper, which also noted that China-based ZTE has also landed

Tuesday, October 28, 2008

Qualcomm and Foxlink sign 3G CDMA module/modem card license agreement

Telecom service Oct 28, 12:34
Qualcomm, a leading developer and innovator of advanced wireless technologies and data solutions, and Foxlink (Cheng Uei Precision Industry)

Sunday, October 19, 2008

Keen competition - Windows Smartphone, i-mate Delist

Windows Smartphone Manufacturer to Delist from London Stock Exchange
­UK-listed Dubai-based Windows smartphone manufacturer, i-mate has reported sales for the six-month ended of September of $20.6 million compared to $46.2 million for the same time last year. This resulted in an estimated operating loss of $10.8 million loss compared to $29.4 million loss for the same time last year.
The company has cash amounting to $11.2 million and stock at $9.1 million with debtors of $3.9 million and creditors of $2.6 million. As stated in the year end results on 29 September the last 2 months have seen global handheld sales drop considerably and this trend is looking set to continue.
Earlier this year, the company blamed Qualcomm for delays in providing chipsets, leading to problems with the launch of several smartphones in the US market.
"Although we have devices which are not dependent on this chipset, it has a significant impact on the range of product we have to sell," Chief Executive Officer Jim Morrison said in a statement at the time. The shortage affected two of the seven Windows Mobile based models it sells.
The company has now decided to de-list its shares from London's Alternative Investment Market (AIM) stock market and will hold a shareholder vote next month. As the CEO, Jim Morrison owns the majority of the company's shares - the resolution is certain to be passed. The delisting should save the company some US$2 million a year in stock-market costs.
Jim Morrison commented “It was made quite clear at the time of our preliminary results last month that the economics and business benefits of being a quoted Company were becoming increasing unclear. Our business and indeed the market continue to weaken as global consumer confidence slides. I fully expect i-mate to be a private company within 60 days.”
If the resolution is passed the Company’s non-executive chairman, Bernard Cragg and non-executive director, Bill Gorjance, will resign and Jim Morrison will take on the role of Chairman and Chief Executive Officer.

Friday, October 17, 2008

Texas Instruments seen posting lower revenue

17 October 2008
Chipmaker downgraded ahead of third quarter report on concerns of wireless market share weakness.
Texas Instruments Inc. will report third-quarter results on Monday, with analysts expecting the chip giant to post 7% lower revenue as the tech industry reels from the uncertainty in the broader market.
The weakening economy, and concerns about TI's ability to maintain market share in the wireless sector prompted Collins Stewart to downgrade the company to a sell."Weakening trends across key end markets will likely cause TI to come in below mid-quarter guidance," analyst Ashok Kumar said in a research note.Analysts expect the chip maker to report earnings of 44 cents a share on revenue of $3.4 billion, according to a consensus survey by FactSet Research. For the year-earlier period, TI reported net income of $776 million, or 54 cents a share, on revenue of $3.66 billion.Analyst Tore Svanberg of Thomas Weisel Partners said he thinks TI will deliver in-line third-quarter results, but said,"We are incrementally concerned about the company's overall backlog visibility into the December quarter "He added,"While we believe TI's business is diversified, we are concerned that low visibility throughout the entire electronics supply chain is resulting in lower bookings activity than otherwise expected at this time of the year."TI surprised analysts by affirming its outlook, especially after a market-share warning from its biggest customer, Nokia Corp.In its revision, TI said it expects third-quarter revenue of $3.33 billion to $3.47 billion, compared with the previous range of $3.26 billion to $3.54 billion. The company also said it expects a profit of 42 to 46 cents a share, compared with the previous range of 41 to 47 cents.TI's dominant position in the market for cellphone chips has been shaken by the shift among some top customers to a multisupplier strategy. Nokia has decided to work with other suppliers such as Broadcom Corp. and STMicroelectronics NV.Ericsson also began working with other chip makers, including STMicroelectronics.

Sony Ericsson posts net loss, cost cuts on track

17 October 2008
Handset maker's loss smaller than analysts expected; higher Q4 volumes likely to be offset by lower prices.
Sony Ericsson Friday said it swung to a third-quarter net loss on weaker sales and slowing consumer demand, but cost-cutting steps helped the phone maker lose less than expected.
The company said it sees the global handset market growing about 10% this year from 1.1 billion units in 2007, with growth highest in emerging markets."As expected, the third quarter has continued to be challenging for Sony Ericsson," said Chief Executive Dick Komiyama, He added,"We have moved forward with our plans to align operations and resources with the consolidation of R&D facilities into a more agile and cost efficient organizational structure."Analysts said the loss was smaller than expected and, at 0835 GMT, Telefon AB L.M. Ericsson shares traded up 6.5% at 50.90 Swedish kronor, outperforming a broadly higher Stockholm market.Sony Ericsson, a joint venture between Sony Corp. of Japan and Ericsson of Sweden, posted a net loss of EUR25 million compared to a EUR267 million net profit a year ago as slowing growth in mature markets weighed on earnings.It said its gross margin, which fell to 22% from 31% a year earlier, was hit by increased price competition and higher costs from suppliers. While new products helped offset some of the loss, strong competition, especially in Europe, weighed on earnings.Nomura analyst Richard Windsor said that, although the gross margin suffered, cost control helped minimize the impact on the operating margin. He said the situation for the company isn't likely to change in the fourth quarter as higher volumes will likely be offset by lower prices.The company shipped 25.7 million phones in the period ending Sept. 30, up 5.3% from the previous quarter. Its market share remained flat at 8% in the second quarter.It said sales were down slightly in the Americas and Asia, while Western Europe sales increase 5% from the second quarter.Handelsbanken analyst Jan Dworsky said the earnings were better than expected, given the low expectations. He said many expected a sharper loss and lower volumes."I'm not sure how they did it, but it paid off," he said. He reiterated his reduce rating and SEK50 target price for Ericsson.After two profit warnings this year, Sony Ericsson in July flagged the third quarter as particularly challenging, and said it aimed to cut operating costs by EUR300 million annually by mid-2009 to help the company become more agile and efficient.Unlike its Finnish rival Nokia Corp., which dominates emerging market sales, Sony Ericsson is largely dependent on developed markets sales, making it more vulnerable to slipping demand for high-end devices in mature markets, where it has greater exposure.Sony Ericsson's net sales dropped 9.7% to EUR2.81 billion from EUR3.12 billion. The average selling price for its handsets dropped to EUR109 from EUR116 in the second quarter and from EUR120 a year earlier, due in part to sales of more lower-priced phones.

Sony Ericsson Sales Drop 10% - Loss Shrinks

17 Oct 2008
­Sony Ericsson has reported a 10% drop in sales to €2,808 million (US$3,777 million) compared to the third quarter of 2007, citing a shift in production to cheaper phones as well as exchange rate fluctuations. The company posted a net loss of €25 million (US$33.6 million) - lower than the average of €74 million loss which had been expected by analysts.
Gross margin also decreased year-on-year and sequentially due to continued price pressure at a time of adverse cost trends in the supplier base.
The company estimated that its mobile phone market share for the third quarter remained flat and is estimated to be around 8%.
"As expected the third quarter has continued to be challenging for Sony Ericsson. We have moved forward with our plans to align operations and resources with the consolidation of R&D facilities into a more agile and cost efficient organisational structure. As previously announced, our target remains to reduce operating expenses by Euro 300 million annually by the end of the second quarter 2009, with the full effects expected to appear in the second half of 2009.These plans are progressing in line with expectations," said Dick Komiyama, President, Sony Ericsson.
As communicated previously, Sony Ericsson paid a second dividend to the parent companies totalling €300 million (€150 million each) in the quarter based on 2007 earnings, and at the end of September 2008 Sony Ericsson had net cash of €1.4 billion (US$1.9 billion).
Sony Ericsson forecasts that the global handset market for 2008 will grow at a rate of around 10% from more than 1.1 billion units in 2007, while the industry ASP will continue to decline. The majority of this growth is expected to be in emerging markets where lower priced phones dominate.
Posted to the site on 17th October 2008

Thursday, October 16, 2008

Economic of scale can help? Nokia

Nokia's scale helps it weather economic storm
By Nick Wood , Total Telecom
16 October 2008
Net profit down 30% on year but CEO says handset maker is "well positioned" in current climate.
Nokia on Thursday reported a 30% decline in net profit from 2007, citing aggressive pricing competition and a tougher economic environment, but said its scale and margins leave it in a strong position.
"We have our eyes wide open to what's happening out there," said Olli-Pekka Kallasvuo, CEO of Nokia, during the company's quarterly analyst call."But Nokia is strong, we have the scale, [and] we have one of the best brands in the world," he commented.Third-quarter profit fell to €1.09 billion from €1.56 billion a year earlier and group revenue declined 5% from €12.99 billion in 2007 to €12.24 billion.Sales at Nokia's core devices and services business declined 7% year on year to €8.61 billion from €9.24 billion.One analyst shares Kallasvuo's confidence."In the current economic environment, out of all of the handset vendors, Nokia is best positioned to deal with it," said Carolina Milanesi, research director at Gartner, who explained to Total Telecom that it has the size and distribution strategy to cope with tougher times."Economies of scale are going to matter more and more," she added.Indeed, Nokia shipped 117.8 million handsets during the third quarter, an increase of 5% from 2007, when it shipped 111.7 million.That said, on a sequential basis, the Finnish handset maker saw shipments to Latin America fall by 28.1%, while growth in its North American and European shipments was largely flat at 0% and 1.1% respectively.As such, Nokia's market share fell slightly to 38% from 40% in the second quarter, a decline it attributed to aggressive competition on pricing from its rivals."It sometimes happens in the market, we decided tactically not to participate…We will try to take market share in a sustainable manner," said Kallasvuo."But don't expect us to give our competitors a free ride," he said.Yet Gartner's Milanesi hinted at weakness in Nokia's handset portfolio.She said that Nokia's top-of-the-range N96 model, which launched in early September, is unlikely to drive ARPU."Operators are getting pretty smart when it comes to subsidising the handsets that are likely to drive ARPU, and there's a danger that the N96 will be seen as an upgrade to the N95, rather than a completely new handset," she said.She also explained that Nokia's 5800 is a late arrival to the fiercely competitive touch screen scene, which could explain why it lost some of its market share."Samsung with its Omnia device will have picked up some volumes, you also have the HTC Diamond, and the 3G iPhone of course – so there has been a lot of competition on the touch screen side that Nokia couldn't compete with," Milanesi explained.Still, Nokia maintained steady operating margins of 12.0% across the group, with its handset business showing a slight dip to 18.6% from 21.2% during the same period in 2007.Its infrastructure arm Nokia Siemens Networks meanwhile saw its margins improve from -3.3% in the third quarter of 2007 to 0% in the three months ending 30 September.Going forward Nokia said despite the financial crisis it expects mobile shipments across the sector to increase during the seasonally strong fourth quarter, and for full year industry volumes to reach 1.26 billion units, up from 1.14 billion in 2007.However, Milanesi has taken a more pessimistic view on the handset market for the fourth quarter."We don't expect the weakness in Q3 to be made up in the fourth quarter," she said.Nokia's CFO Rick Simonson also said the infrastructure market remains uncertain, as Nokia Siemens Networks reported a 4.7% decline in year-on-year sales, and a 13.9% drop sequentially from the second quarter."[Nokia Siemens Networks] saw a sharp net sales decline....The infrastructure market is still in a tough environment as we go into what is a seasonally weak quarter," he said.

Wednesday, October 15, 2008

Mobile application trends

mashup on mobile phone - eventspace

5 most discussed applications
- Gaming (Super Monkey ball)
- Social networking (Facebook)
- Music (remote)
- Music (Tuner)
- Music (Shazam)

Friday, October 10, 2008

Handset Navigation Users Will Reach 70 Million in 2014

­According to a new research report by Berg Insight the number of mobile subscribers downloading navigation routes using their mobile handsets is expected to grow from 16 million users in 2008 at a compound annual growth rate (CAGR) of 27.9 percent to reach 70 million users in 2014.

Revenues from subscriptions and advertisements are expected to reach € 597 million by 2014 from € 177 million in 2008, a CAGR of 22.4 percent.

The growing adoption will be driven mainly by the introduction of GPS-technology in smartphone handsets and bundling of navigation applications with mobile devices or service plans. Following the introduction of the first GPS enabled handset in Europe in 2007, there has been a massive increase in the number of models available from Nokia and other manufacturers. Increasing volumes have paved the way for widespread adoption of mobile navigation services in Europe. Meanwhile the US market has continued to grow to a level of 6 million active subscribers to mobile navigation services in Q2-2008. The anticipated launch of GPS enabled handsets by the GSM operators AT&T and T-Mobile USA are expected to drive further growth in 2009.

André Malm, telecom analyst, Berg Insight says, “The mobile industry is now starting to reap the benefits from the introduction of GPS enabled handsets. However, most mobile navigation users only use the service during a free trial period. The key challenge will be to convert these test-users into paying subscribers.”

Posted to the site on 10th October 2008

SiRF Signs Patent Deal with Qualcomm - Gets Broadcom Review

­GPS based platforms vendor, SiRF Technology Holdings has announced a deal with Qualcomm and also received a review notice from the International Trade Commission (ITC) regarding its ongoing patent dispute with Broadcom.

The review by the ITC covers part of the Initial Determination by the ITC Administrative Law Judge that certain SiRF products infringed upon six patents held by Global Locate, Inc., a wholly-owned subsidiary of Broadcom. Specifically the Commission has determined to review claims on three out of the six patents.

"We are pleased that the Commission has accepted our appeal to review the initial ruling of the Administrative Law Judge," said Kanwar Chadha, founder of SiRF Technology. "We are working closely with our customers to implement multiple measures to enable them to continue to ship their innovative products into the U.S. market."

The company has also signed a mutual Patent Non-Assertion Agreement with Qualcomm covering each party's patent portfolio.

"As an innovation driven company, we respect Qualcomm's vast intellectual property portfolio," said Kanwar Chadha, founder of SiRF Technology. "We believe that this agreement between leading innovators of AGPS enabled location technology will help expand the market for location enabled products, services and content, while enabling each of us to compete in the market place based on product merits."

Posted to the site on 10th October 2008

Thursday, October 9, 2008

NeuStar Delivers Unified Mobile IM Service to Hong Kong Operator

­Hutchison Telecom Hong Kong has ordered a mobile instant messaging platform from NeuStar, to enable its customers to have access to Windows Live Messenger, Yahoo! Messenger and the 3 Community from one central application. Hutchison Telecom trades under the Three brandname. The integrated software client is available for free download on the company's mobile portal "Planet 3", and is available for dozens of the most popular mobile phones on the market.
"The success we have experienced with mobile Instant Messaging to date has encouraged us to develop new services and better ways to integrate messaging into people's lives," said Amy Lung, chief operating officer -- Mobile at Hutchison Telecom Hong Kong. "NeuStar has been our trusted partner of choice in delivering simple and effective new messaging services to our customers. The ability to customize several messaging platforms offers users a memorable and personal application that we believe will be hugely popular."
"Our relationship with Hutchison Telecom Hong Kong has been a successful one, and we are pleased that our relationship has been further enhanced by this new initiative," added Allen Scott, general manager of NeuStar Next Generation Messaging (NGM). "Hutchison Telecom Hong Kong is one of the most innovative operators in Asia, and as they begin to offer an increased level of personalization and convenience to their customers, I am certain they will receive tremendous positive response."
Posted to the site on 9th October 2008

Wednesday, October 8, 2008

MediaTek gearing up for WiMAX and WCDMA markets

2008/10/8
MediaTek is exhibiting its WiMAX and WCDMA (W&W) chips at the 2008 Taipei International Electronics Show (Taitronics), with the WiMAX chips perhaps being mass produced at the end of 2008. WCDMA chip samples have already been sent to customers and related shipments are expected to begin in the first half of 2009. The so-called W&W chips will play an important roles for MediaTek's operation in 2009, company chairman Ming-Kai Tsai indicated.

Tuesday, October 7, 2008

ZTE Planning $880 Million R&D Center

­China's ZTE is planning a RMB6 billion (US$880 million) R&D centre in Xian, the capital of Shaanxi province. The company said that its Xian Hi-tech Park would bring its research and development, production, outsourcing services and customer service training under one roof.
ZTE Planning $880 Million R&D Center
­China's ZTE is planning a RMB6 billion (US$880 million) R&D centre in Xian, the capital of Shaanxi province. The company said that its Xian Hi-tech Park would bring its research and development, production, outsourcing services and customer service training under one roof.